How to anticipate reputational risks using virtual scenarios and automation

In this second entry in the “Resilience” series, we tackle the challenges of trying to manage or control the impact of reputational risks on business continuity and sustainability.

In the first article, we discussed preventing these risks through human and AI anticipation. Now, we want to address the challenge of preparing for uncertain events by using technology to plan scenarios and program contingencies.

“Uncertainty” is the fundamental quality of any risk, with complexity being an additional factor in reputational risks in particular. As such, two extra schools of strategic thought should be applied alongside conventional risk management techniques: Scenario planning and problem solving. In both cases, the focus is on enabling companies to act in ways that go beyond merely defensive and short-term responses of a finance-focused nature.

In the modern world, thinking only about risks from a threat perspective does not help build more resilient organizations. Rather, it weakens the ability to adapt to and recover from disruptive changes.

We must broaden our approaches, accept uncertainty, and think differently in order to avoid getting stuck in an environment that anthropologist Jamais Cascio christened BANI, standing for Brittle, Anxious, Nonlinear, and Incomprehensible. As we are reminded by LLYC executives Cleber Martins and Adelia Chagas, this is a BANI context where “all paths are open to opportunities.”